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House values are rising in suburbs across Wairarapa and Greytown is leading the way.

The QV quarterly analysis of North Island property values showed Greytown was the most expensive area to buy into with an estimated median value of $401,150 at the end of December. That value increased 1.5 per cent over the quarter and 4.3 per cent over the year.

The cheapest territorial authority district was Featherston with an average value of $197,800 up 1.7 per cent throughout the quarter.

Figures showed Lansdowne experienced the biggest increase in values over the final quarter of last year.

There was a huge amount of buyer interest in Wairarapa and a lack of stock, which would continue to push prices up in the immediate future.

Featherston seemed to be gaining traction and prices would follow eventually, said Mr Mordaunt.

The quality of houses there wasn't as high as elsewhere in South Wairarapa. People had bought houses and done them up in Martinborough and Greytown over the last 20 years but that hadn't happened in Featherston.

Mr Mordaunt said a lot of development was going on in Carterton which would have a long term effect on the housing market in Wairarapa.

"It will be interesting to see if anything springs up to counter that in Masterton or the other places."

Developers in Carterton had been building houses before selling them rather than selling off plans.

"That's been incredibly successful over the last couple of years," he said.